Fund houses call for bold interest rate cut to 0%

This is the first time rates have fallen below 2% in the Bank's 315 year history but commentators believe more drastic measures must be taken to help the beleaguered UK economy. Newton Investment Management's global strategist Peter Hensman was not surprised by the cut but suggested interest rates could well reach zero. "With the rate of business failures increasing and likely to contribute to continued job losses, further rate cuts are likely and a move to quantitative easing, or direct injection of money into the economy - as seen in Japan between 2001 and 2006 - cannot be ruled out...